Accenture has sold Navitaire, a provider of technology solutions to the airline industry, to Amadeus, in a deal valued at $830 million.
The addition of Navitaire’s IT solutions for the low-cost airline segment will complement Amadeus’ Altea offerings for its full-service carrier customer base.
Amadeus aims to market and sell the two product portfolios separately and will continue to invest in both platforms. Amadeus will absorb nearly 550 Navitaire employees, including senior management team.
The acquisition will enable Amadeus to improve the connectivity between different carriers in the same airline groups or alliances. Amadeus reported revenues of €3,417.7 million and EBITDA of €1,306 million in 2014. Amadeus expects marginal positive impact on its revenues following the buy of Navitaire. Accenture, which clocked $30 billion annual revenue, did not reveal the revenue of Navitaire.
Luis Maroto, president and CEO of Amadeus, said: “Airlines face an increasingly competitive market for an increasingly demanding traveler, and this transaction will give us the ability to serve all airlines with technology that can enable them to drive new revenues and contain their costs.”
In a separate development, Accenture will become a Strategic Partner for Amadeus’ airline IT business for offering management consulting, technology consulting, systems integration, business process outsourcing and digital services.
Accenture will also provide infrastructure outsourcing, application and research and development services. Accenture will provide hosting services for current Navitaire clients as well as Amadeus’s future clients that purchase the Navitaire solution.
Navitaire focuses on the low-cost and hybrid-carrier segments of the airline industry and works with more than 50 operators, providing revenue-generation and cost-streamlining solutions in the areas of reservations, ancillary sales, loyalty, revenue management, revenue accounting and business intelligence.
Recently, Accenture completes the acquisition of Javelin Group in a bid to expands Accenture strategy capabilities in the global retail industry.